Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to change the Climate Change Levy treatment of electricity used to power passenger and freight trains.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
Energy supplies used in certain forms of transport are exempt from the main rate of the Climate Change Levy (CCL). This includes electricity used to electrify train lines, light a railway carriage transporting passengers and light the cab interior of a freight train transporting goods.
The Government has no current plans to change the treatment of electricity used to power passenger and freight trains.
The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has considered introducing a national levy on passengers departing from UK ports on cruise ships.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The maritime sector is subject to a range of tax rules.
Qualifying shipping companies may elect into Tonnage Tax, an alternative corporation tax regime under which taxable profits are calculated by reference to the tonnage of ships operated rather than actual commercial profits. Tonnage Tax is designed to support the competitiveness of the UK maritime sector and encourage shipping activity and strategic management functions to be based in the UK.
The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to introduce additional taxes or levies on commercial port operators.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The maritime sector is subject to a range of tax rules.
Qualifying shipping companies may elect into Tonnage Tax, an alternative corporation tax regime under which taxable profits are calculated by reference to the tonnage of ships operated rather than actual commercial profits. Tonnage Tax is designed to support the competitiveness of the UK maritime sector and encourage shipping activity and strategic management functions to be based in the UK.
The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has considered introducing additional taxation on rail freight operations.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Government recognises the pressures faced by drivers and other fuel users from price increases from the conflict in the Middle East. At Budget the Chancellor announced the Government is extending the 5 pence per litre (ppl) fuel duty cut by a further six months to July 2027 and delaying uprating until the same date, providing breathing space to motorists whilst prices are high. Therefore, fuel duty will remain at 52.95ppl for both petrol and diesel to July 2027.
The government’s decisions on fuel duty across this Parliament will save the average car driver £230, the average van driver saves £472 and the average heavy goods driver nearly £4000 compared to plans under the previous government, and means petrol and diesel will be 15p per litre cheaper from April 2027.
Recognising the importance of the haulage sector, the Government also announced a 12-month vehicle excise duty (VED) holiday for the majority of heavy goods vehicles, with hauliers and operators of fuel based refrigerated road transport also benefiting from the extension of the 5p fuel duty cut.
Rail freight is eligible for red diesel entitlement to avoid perverse environmental outcomes, namely transferring rail freight or passengers to more polluting lorries, coaches and cars if costs rose. Red diesel is taxed at 6.48ppl following the introduction of a 3.7ppl cut, which at Budget the government announced will be extended to 1 July 2027.
As with all taxes, the Government keeps fuel duty under review; and any changes are announced at fiscal events.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to amend the rates or qualifying conditions of the Tonnage Tax regime for shipping companies.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The maritime sector is subject to a range of tax rules.
Qualifying shipping companies may elect into Tonnage Tax, an alternative corporation tax regime under which taxable profits are calculated by reference to the tonnage of ships operated rather than actual commercial profits. Tonnage Tax is designed to support the competitiveness of the UK maritime sector and encourage shipping activity and strategic management functions to be based in the UK.
The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to introduce additional Vehicle Excise Duty charges for licensed taxis and private hire vehicles.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
Vehicle Excise Duty (VED), sometimes known as 'road tax' or 'car tax', is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, heavy goods vehicles (HGVs) and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.
The HGV levy ensures UK and non-UK HGVs contribute when using the UK’s road network. Revenue from vehicle taxes such as VED and the HGV levy helps to fund vital public services and infrastructure, including investment in roads and transport.
The Government annually reviews the rates and thresholds of vehicle taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 14 October 2026 to Question 30485, whether they would use the same formula to calculate the average liability for affected employees for the subsequent five financial years following 2029-30.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The equivalent figure for tax year 2030-31 is £86. 2030-31 was the final year for which fiscal impacts were produced.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has considered changing the VAT treatment of domestic ferry passenger services.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances, and does not routinely comment on proposals.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to review the zero rate of VAT on eligible passenger transport services.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances, and does not routinely comment on proposals.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had regarding the zero rate of VAT on passenger rail fares.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances, and does not routinely comment on proposals.